Nike, Inc. manufactures sports apparel using batch costing. In March 2030, the company produces 5 batches of shoes with varying direct materials and labor costs:

Batch	Direct Materials ($)	Direct Labor ($)	Factory Overhead ($)
Batch 1	40,000,000	15,000,000	10,000,000
Batch 2	42,000,000	16,000,000	11,000,000
Batch 3	41,000,000	15,500,000	10,500,000
Batch 4	45,000,000	17,000,000	12,000,000
Batch 5	48,000,000	18,000,000	13,000,000

Additional costs:

• Selling expenses: $5 million
• Distribution expenses: $3 million

Required:

• Calculate the total manufacturing costs for each batch.
• Allocate selling and distribution expenses using the activity-based costing method.
• Analyze the cost structure and profitability of each batch.
• Discuss the advantages of activity-based costing in batch costing.
• Prepare a batch costing statement for Nike, Inc.